Supreme Court Dismisses PIL for Crypto Regulations in India

Crypto trading in India lacks standardized regulations, with the government reportedly formulating a framework influenced by global entities.

Supreme Court Dismisses PIL for Crypto Regulations in India
Supreme Court Dismisses PIL for Crypto Regulations in India

A Public Interest Litigation (PIL) that sought to institute regulations and a framework of guidelines about cryptocurrency trading in India was not considered by the Indian Supreme Court.

A report states that following the petitioner’s arguments, the tribunal presided over by the Chief Justice of India (CJI) noted that the petitioner’s requests are legislative.

In light of the nature of the petition, the bench dismissed the plea, which included Justices JD Pardiwala and Manoj Misra.

The Supreme Court observed that the petitioner’s primary aim in filing a PIL, which seeks regulations and guidelines about cryptocurrency and its trading, is to obtain parole.

Notably, the Delhi Police are detaining the petitioner, Manu Prashant Wig, in a cryptocurrency case.

A case was submitted in 2020 by the Economic Offence Wing (EOW) of the Delhi Police, wherein Wig was accused of luring individuals into cryptocurrency investments to assure greater returns.

As per the report, Wig held the director position at Blue Fox Motion Picture Limited, where he solicited investments from individuals. The victims subsequently informed the Economic Offence Wing (EOW) in Delhi about the fraud.

A lawsuit was filed by 133 investors or victims who had previously invested their funds, alleging that Wig had committed fraud.

The petitioner, Manu Prashant, filed a PIL demanding regulations and a framework for cryptocurrency trading in India to be released from judicial custody.

Although the Supreme Court denied the PIL, the bench granted the petitioner, who is presently incarcerated, permission to seek legal remedies and consult with other pertinent authorities.

The bench, presided over by CJI Chandrachud, advised the petitioner to seek parole from a separate court during the court hearing.

The court, with reservations regarding the request for regulations on cryptocurrency trading, stated that such proposals are within the purview of the legislation.

The court emphasized its jurisdictional limitations following Article 32 of the Constitution of India when issuing directives.

The state of cryptocurrency trading in India continues to be a subject of contention owing to the lack of standardized regulations, guidelines, or comprehensive frameworks governing the management of cryptocurrencies.

Reportedly, India is formulating a regulatory framework for cryptocurrencies, incorporating suggestions jointly by the Financial Stability Board (FSB) and the International Monetary Fund (IMF).

Recent reports suggest that legal legislation may be enacted due to the outcome within the following five to six months.